As someone who has never had cable, and never plans to, the idea of Google TV is great.
My doubts come from the web video experience they are offering. By providing "the full web experience" on a TV they are ignoring that the change in form factor comes with different UI considerations. Quite frankly I don't want to browse the web on my TV in the same way I do on my computer. There is a reason companies like Boxee have been developing specialized UI's to deliver web video to the TV. The search function is great, and will probably work well for finding content. Browsing the whole web page just to get to the video is my only issue. Yes, I know, all you really have to do is click on the full screen button. Unless of course you want to watch in HD, which is often not the default on video sites. Upon utilizing universal search to find a show or movie I want a simple list of items to select and after selection I want full screen video to play at the highest possible resolution available. I don't want to go to a web page designed to be used with a mouse and keyboard while sitting at my computer.
Obviously this could be fixed by the websites themselves designing sites specifically for Google TV. Google could also implement features like Boxee has with how they handle Hulu's page, making video full screen automatically. Coding for each individual web video source is quite a large task, if not impossible though and websites like Hulu are fighting tooth and nail to stop their videos from showing up on TV's. Individual apps for each video source isn't ideal either, unless the universal search can bring together all of these source's videos into one streamlined UI. And that is what I, and I am guessing most people, really want. A simple way to search through all video on the web and on my local devices without having to jump around between different sources. Google was right, no one cares where the content is coming from we just want to watch it.
This is an early release and with all such releases major improvements will surely be made with future updates. I am also very excited for the platform and its integration with the rest of Google's services. I just hope some of the ideas they have get fleshed out in the future and they learn to integrate video in a more seamless manner.